The IPOX® Week, June 10, 2019

  • IPOX Indexes score big as market sentiment turns; IPOX 100 U.S. (ETF: FPX) closes week at fresh All-Time High.
  • Insulated specialty deals soar after earnings.
  • IPO Deal-flow Review & Outlook: Online fashion retailer Revolve (RVLV US) soared in stock market debut. Cybersecurity unicorn CrowdStrike (CRWD US) and pet products e-tailer Chewy (CHWY US) lined up.

IPOX Indexes score big as market sentiment turns; IPOX 100 U.S. (ETF: FPX) closes week at fresh All-Time High.  Amid lip service from the FED, mute U.S. employment numbers driving lower rates still and optimism about global trade, the IPOX Indexes finished one of the most violent upswings in recent U.S. stock market history with significant weekly gains. Top of the list ranked the FANG-free, diversified IPOX 100 U.S. (ETF: FPX) which closed out the week at a fresh All-Time High, gaining +4.84% to +23.98% YTD, and extending the YTD relative performance lead vs. the S&P 500 (SPX) – benchmark for U.S. stocks – to a massive +936 bps. Big gains in specialty holdings perceived insulated from trade war fears and economic slowdown drove some of the big gains, including advertising technology platform operator The Trade Desk (TTD US: +23.25%), database software developer MongoDB (MDB US: +21.11%) and personal shopping platform Stitch Fix (SFIX US: +20.77%), while further declines in hardware maker Dell (DELL US: -8.82%) did little to dent the strong overall showing. Gains extended to the IPOX International (ETF: FPXI) and the IPOX Europe (ETF: FPXE) with firms including e-commerce platform provider Shopify (SHOP US: +10.97%) and biotech CRISPR Therapeutics (CRSP US: +20.55%) standing out. We note a week of losses for select red-hot European property stocks, including Germany’s Vonovia (VNA GY: -4.77%), after government calls for a rent freeze.

IPOX 100 U.S.-Style Investing with the “FPX” ETF since 2006.  

IPOX-linked Fund Performance: Last week, the IPOX 100 U.S. (IPXO)-linked, 5-star (10-years) $1.2 billion First Trust IPOX® U.S. Equity Opportunities ETF (FPX) added +4.88% to +24.40% YTD, a fresh record. The IPOX International (IPXI)-linked 4-star (3-years) First Trust IPOX® International Equity Opportunities ETF (FPXI) and the IPOX 100 Europe (IPOE)-linked First Trust IPOX® Europe Equity Opportunities ETF (FPXE) also jumped and closed the week at +15.41% YTD and +19.78% YTD, respectively. Amongst actively managed IPOX-linked funds, the Catalyst IPOX® Allocation Fund (OIPIX) – a 2019 Thomson Lipper Award Winner – added +3.75% to +22.38% YTD, the highest level on record.

Select IPOX® Indexes Price Returns (%) Last Week 2018 2019 YTD
IPOX® Indexes: Global/International
IPOX® Global (IPGL50) (USD) 3.90 -11.37 20.54
IPOX® International (IPXI)* (USD) 2.70 -13.41 14.28
IPOX® Indexes: United States
IPOX® Composite U.S. (IPXC)* 4.18 -7.59 16.31
IPOX® 100 U.S. (IPXO)* 4.84 -8.80 23.98
IPOX® 30 U.S. (IPXT) 4.82 -10.28 19.86
IPOX® Indexes: Europe/Nordic
IPOX® 30 Europe (IXTE) (EUR) 2.77 -13.46 21.45
IPOX® Nordic (IPND) 1.69 -15.45 20.53
IPOX® 100 Europe (IPOE)* (USD) 3.60 -16.60 18.33
IPOX® Indexes: Asia-Pacific/China
IPOX® Asia-Pacific (IPTA) (USD) 1.61 -3.21 3.22
IPOX® China (CNI) (USD) -0.96 -22.83 2.92
IPOX® Japan (IPJP)** (JPY) -0.42 -13.70 0.37

* Basis for ETFs: FPX US, FPX LN, FPXE US, FPXU FP, FPXI US, TCIP110 IT and CME-traded e-mini IPOX® 100 U.S. Futures (IPOM9). ** Live since 07/18. Please contact [email protected] for other IPOX® Indexes.

IPO Deal-flow Review & Outlook: Online fashion retailer Revolve (RVLV US) soared in stock market debut. Cybersecurity unicorn CrowdStrike (CRWD US) and pet products e-tailer Chewy (CHWY US) lined up. At least 6 firms debuted last week, with the average (median) equally-weighted stock adding +17.55% (+3.90%) based on the difference between the final offering price and Friday’s close. Millennial and Gen-Z focused online fashion retailer Revolve (RVLV US: +88.89%) surged on its NYSE debut, while Chinese online tutoring provider GSX Techedu (GSX US: -4.76%) closed the week below final offer. Overseas, Amsterdam embraced its first listing of the year – Iceland based food processing technology provider Marel (MAREL NA: +5.41%), while Haitong Securities’ financial leasing unit spin-off Haitong UniTrust (1905 HK: -1.06%) suffered from little retail demand in Hong Kong. We see a busy week ahead for global IPOs, led by another Silicon Valley unicorn, cloud-based cybersecurity startup $6 billion CrowdStrike (CRWD US), followed by PetSmart’s online pet product retailer Chewy (CHWY US). Hong Kong is also preparing for three major listings for the week with the largest education IPO China East Education (667 HK), state monopoly and the biggest cigarette maker in the world – China National Tobacco’s international unit China Tobacco International (6055 HK) and the second billion-dollar-offer, profitable drugmaker Hansoh Pharma (3692 HK), lined up. Forthcoming deals include luxury goods consignment marketplace TheRealReal (REAL US) and the IPO of cycling startup Peloton.

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